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Old 23rd June 2023, 20:47   #46
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Re: Pre-owned BMW 320d, pre-owned Skoda Octavia 2.0 TDI, or brand new Octavia 1.8 TSI DSG?

Hi,

A quick analysis on the cost of ownership of the car over a period of 6 years:

I have always maintained that the maximum cost in car ownership is the depreciation of the capital value.
I purchased the car in November 2017 for 22.5 lacs by using my savings (No Car Loan). If the 22.5 Lacs would have been kept in a bank FD (Risk Free Returns) earning 5.5% per annum the 22.5 lacs would become ~31,00,000 in November 2023 over a period of 6 years. (Power of Compounding)

The market value of the car in November 2023 should be around 7 – 7.5 lacs. This means that it will cost me ~ 23,00,000 in depreciation and loss of interest income alone.

In addition there are the other expenses of Insurance, Servicing, Repairs, Tyres, Battery, etc..

The maths works out to a total expense of ~ 31 Lacs over 6 years or approximately ~5.2 lacs per year. This is in line with what I had anticipated when I made the purchase decision in 2017.

Purchase Price (Nov 2017): 22,50,000
Purchase Price with Compounded Interest @ 5.5% P.A. in Nov 2023: 31,02,396
Market Value of Car in Nov 2023: 7,50,000

Expenses:
Depreciation: 23,52,396
Insurance: 5,81,000
Servicing: 48,000
Repairs: 19,000
Tyres: 44,000
Battery (Varta - Imported from Germany): 29,000
Car Washing, Detailing, Misc.: 45,000

Total Expenses for 6 years: 31,18,396
Annual Cost (Divided by 6): 5,19,733


I am not including cost of fuel. If I wouldn’t take the BMW to travel to a place I would then drive another car or take a cab which would cost me almost the same or a little bit more. The total kms driven over 6 years will be around 20,000 Kms.
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Old 24th June 2023, 06:05   #47
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Re: Pre-owned BMW 320d, pre-owned Skoda Octavia 2.0 TDI, or brand new Octavia 1.8 TSI DSG?

Folks, I'm looking to buy a used 2020 Skoda Octavia 1.8 in Delhi. I have a few questions though -
Does it meet BS6.2 and E20 norms?
Also which platform is the best to look for used cars? Platforms like Carwale, Cars24?
Lastly, how much should I budget for it?
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Old 21st July 2023, 13:50   #48
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Re: Pre-owned BMW 320d, pre-owned Skoda Octavia 2.0 TDI, or brand new Octavia 1.8 TSI DSG?

Quote:
Originally Posted by RajBajwa View Post
A quick analysis on the cost of ownership of the car over a period of 6 years:

Purchase Price (Nov 2017): 22,50,000
Purchase Price with Compounded Interest @ 5.5% P.A. in Nov 2023: 31,02,396
Market Value of Car in Nov 2023: 7,50,000

Expenses:
Servicing: 48,000
The service cost for the 320d over 5 years was just 45K? That is a pleasant surprise.
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